According to CRN, D&H Distributing has added Dell Technologies servers to its lineup with storage products scheduled for early 2026. The partnership represents Dell’s strategic move toward a distribution-first model, leveraging D&H’s consultative approach and strong partner relationships. This expansion comes as D&H grows its enterprise business, which now represents $2.5 billion of its $7 billion annual revenue.
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Understanding Dell’s Distribution Evolution
Dell’s history with distribution channels has been complex and evolving. The company, founded by Michael Dell in 1984, initially built its reputation on direct sales before gradually embracing channel partnerships. The current shift toward distribution-first models represents a significant strategic evolution for a company that once famously bypassed traditional IT distribution entirely. This move reflects the increasing complexity of enterprise solutions where single-vendor approaches no longer suffice for sophisticated deployments involving AI, security, and hybrid infrastructure.
Critical Challenges in Enterprise Distribution
While the partnership appears promising, several challenges could undermine its success. The transition from selling commodity hardware like printers and switches to complex server and storage solutions requires substantial expertise development. D&H’s claim of training employees “three to four days a week” suggests they recognize this gap, but enterprise customers will quickly expose any knowledge deficiencies. Additionally, Dell’s existing enterprise partners may view D&H as direct competition rather than complementary, potentially creating channel conflict that could damage Dell’s broader partner ecosystem.
Market Implications for Competitors
This partnership signals a broader industry trend where manufacturers are prioritizing distributors with strong technical capabilities over those focused primarily on logistics. Competitors like HPE and Lenovo will need to reassess their own distribution strategies, particularly for reaching mid-market customers who require more hand-holding than enterprise clients but more sophistication than SMB buyers. The emphasis on “solution sales” combining Dell infrastructure with security products from vendors like SonicWall and Cisco suggests manufacturers are recognizing that customers want integrated solutions rather than piecemeal components.
Strategic Outlook and Predictions
The success of this partnership will depend heavily on execution quality rather than strategic intent. If D&H can genuinely deliver the consultative expertise needed for complex storage deployments in 2026, they could capture significant market share from more traditional enterprise distributors. However, the 18-month timeline for storage rollout suggests Dell is taking a cautious approach, using server sales as a proving ground before trusting D&H with their crown jewel storage business. Given D&H’s historical focus on different market segments, their ability to scale enterprise expertise quickly will determine whether this becomes a transformative partnership or merely another distribution agreement.
